Question
Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the table below. Corporate tax rate is 38
Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the table below.
Corporate tax rate is 38 prcent, what is the after-tax cost of the company's debt?
| Bond |
Coupon Rate | Price Quote | Matutiry | Face Value |
| 1 | 8.70% | 106.2 | 7 years | $21,000,000 |
| 2 | 6.70 | 94.2 | 10 years | 37,000,000 |
| 3 | 8.40 | 105.0 | 17.5 years | 42,000,000 |
| 4 | 8.90 | 94.7 | 24 years | 57,000,000 |
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Investment Risk Management
Authors: Yen Yee Chong
1st Edition
0470849517, 9780470849514
